Stable net profit for tech company

Scott Technology has reported a solid net profit after tax of $4.3 million for the six-month period ending on February 28th. In a statement released to the NZX, the company disclosed that revenue was $122 million, a decrease of 14% compared to the previous year. Operating ebitda also saw a decline of 27% to $12.2 million, while operating cash flow increased to $14.5 million from $7.7 million.

Net debt decreased by 35% to $13.2 million, and the board announced a dividend of 3 cents per share unimputed, down from 5 cents per share in the previous year. The company attributed the drop in revenue to a challenging economic environment and lower order intake throughout the fiscal year.

Despite the tough market conditions, Scott Technology’s forward work pipeline remained strong at $165 million, thanks to a strategic focus on high-margin opportunities and recent project wins that will drive growth in the second half of the year. The company also noted that while recent tariff developments were not expected to have a direct impact on their finances for the year, the uncertainty surrounding trade policies could affect businesses’ investment decisions.

Although some sectors may face challenges, Scott Technology sees potential opportunities, especially in markets where their European and Asian competitors are subject to higher tariff rates when exporting to the US compared to New Zealand or Australia. – APL